MOREHEAD CITY — An employee of the N.C. Division of Marine Fisheries has completed disciplinary action, but there is still no word on a possible criminal charge following a recent state audit that found he violated conflict of interest policies by contracting with his father-in-law’s trucking company to transport oyster shells for the division.

Clay Caroon was suspended for two weeks without pay by the division as disciplinary action due to the findings of the report. He reported back to work Dec. 10, according to the division.

There was no word as of Tuesday on whether Caroon will face charges for alleged violation of state law.

The N.C. Office of the Auditor initiated an investigative audit into the alleged activities after receiving a tip on its hotline.

A report was released last month that found that Caroon, a biology supervisor in the Oyster Rehabilitation Program, approved state contracts with New Bern-based B.F. Potter, a trucking company owned by his father-in-law, Denard T. Potter. Some work was subcontracted to Trans Gate, a company owned by Caroon’s wife.

The contracts to haul oyster shells, used for artificial reefs, totaled $209,000 during the last nine years, the report said.

The division noted in a news release, issued the day of the report’s release, that the use of Potter’s trucking company predated Caroon’s promotion into a contracting position.

The division has a conflict-of-interest policy and had already taken steps to correct problems identified in the report, according to the release.

The division did an internal review of transactions with Potter’s company and found there were not overpayments and that rates were competitive with those paid by other state agencies for comparable services, the release stated.

But a question remains about whether there will be a charge filed against Caroon for an alleged violation of state law.

State law says no public officer or employee who is involved in making or administering a contract on behalf of a public agency may derive a direct benefit except as allowed by law. According to the report, Potter said that he provided a $5,000 payment to Trans Gate to Caroon’s wife to pay for expenses for a family vacation to Disney World.

Caroon was required by the Division to repay the $5,000 and he has done so, the division said.

During the audit investigation, the Division of Marine Fisheries reported the alleged crime to the N.C. Department of Environment and Natural Resources general counsel to report to the State Bureau of Investigation, division spokeswoman Patricia Smith said.

The division has not heard any more on this than what was release in the audit.

The auditor’s office has handed the report over to the N.C. State Attorney’s Office.

The Daily News contacted the state attorney general’s office about the possible charges and had not received a reply as of Tuesday.